The Texas House of Representatives introduced legislation to allow the state to own Bitcoin as a first step toward it potentially becoming legal tender that could be used to pay taxes in the Lone Star State. 

The Texas Strategic Bitcoin Act (HB 1598), authored by Chairman Giovanni Capriglione of the House Pensions, Investments, and Financial Services Committee, pledges to not use taxpayer money to buy Bitcoin and is relying on individuals and companies to donate Bitcoin “to promote a shared ownership and community investment in Texas ’s financial future,” according to the bill. The legislation came out of the Texas Blockchain Council. 

“This is the first step towards integrating Bitcoin into the Texas economy,”  Lee Bratcher, president and co-founder of the council, said in an interview. Texas is ranked the eighth largest economy in the world – larger than Russia, Canada and Australia. “Eventually, the state will accept taxes in Bitcoin and one day, possibly make it legal tender in conjunction with federal action,” Bratcher said. 

Chances of passage

He believes the bill has a high chance of passing given the support it’s received from Texas elected officials. If it passes the House it must be approved by the state Senate and then signed into law by the governor. 

The Texas effort is not to be confused with the Strategic Bitcoin Reserve proposed by the U.S. Senator Cynthia Lummis and popularized by President-elect Donald Trump. 

Alan Orwick, co-founder of the proof-of-work blockchain Quai Network, said that while the bill doesn’t explicitly mention the Strategic Bitcoin Reserve, it aligns with broader discussions around integrating Bitcoin into national reserve strategies. 

Orwick was optimistic about the legislation’s chances of approval. 

“However, the final outcome will depend on the political climate and the alignment of priorities with both legislative bodies and the broader economic strategy,” he said. 

Other jurisdictions exploring similar paths towards integrating Bitcoin into national finance include El Salvador and the Central African Republic, Orwick said. “These examples highlight a growing trend of smaller nations adopting Bitcoin as a tool for innovation and economic resilience, reflecting a broader global movement towards embracing digital assets as part of national economic strategies,” he said. 

Patrick Gerhart, president of banking operations for the remittance app provider Telcoin, said interest in crypto reserves is gaining traction across the country. “The upcoming administration has come across as very favorable to digital assets, allowing not just the U.S. government to pursue this but also states,” Gerhart said.